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The Relative Income and Relative Deprivation Hypotheses : A Review of the Empirical Literature

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dc.contributor.authorVerme, Paolo
dc.date.accessioned2013-09-25T20:36:23Z
dc.date.available2013-09-25T20:36:23Z
dc.date.issued2013-09
dc.description.abstractThe paper provides a review of the empirical literature in economics that has attempted to test the relative income hypothesis as put forward by Duesemberry (1949) and the relative deprivation hypothesis as formalized by Runciman (1966). It is argued that these two hypotheses and the empirical models used to test them are essentially similar and make use of the same relative income concept. The review covers the main intellectual contributions that led to the formulation and tests of these hypotheses, the main formulations of the utility and econometric equations used in empirical studies, the main econometric issues that complicate tests of the hypotheses, and the empirical results found in the literature. The majority of studies uses absolute and relative income together as explanatory factors in utility models and finds absolute income to have a positive and significant effect on utility (happiness). The majority of studies also finds relative income to be a significant factor in explaining utility but the sign of this relation varies across studies. The source of this variation is complex to detect given that few results are directly comparable across studies because of differences in model specifications.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/09/18263952/relative-income-relative-deprivation-hypotheses-review-empirical-literature
dc.identifier.doi10.1596/1813-9450-6606
dc.identifier.urihttps://hdl.handle.net/10986/15825
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6606
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAVERAGE INCOMES
dc.subjectCONSUMERS
dc.subjectCONSUMPTION FUNCTION
dc.subjectCROSS-COUNTRY STUDIES
dc.subjectCROSS-SECTION DATA
dc.subjectDATA SETS
dc.subjectDECISION MAKING
dc.subjectDEPENDENT VARIABLE
dc.subjectDEVELOPED COUNTRIES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDIMINISHING RETURNS
dc.subjectDISTRIBUTIONAL CHANGE
dc.subjectECONOMETRIC ANALYSIS
dc.subjectECONOMETRIC ISSUES
dc.subjectECONOMETRIC MODEL
dc.subjectECONOMETRIC MODELS
dc.subjectECONOMETRIC PROBLEMS
dc.subjectECONOMETRICS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC INEQUALITY
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC REVIEW
dc.subjectECONOMIC SYSTEMS
dc.subjectECONOMIC THEORY
dc.subjectELASTICITY
dc.subjectEMPIRICAL ANALYSIS
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL LITERATURE
dc.subjectEMPIRICAL MODEL
dc.subjectEMPIRICAL MODELS
dc.subjectEMPIRICAL RESEARCH
dc.subjectEMPIRICAL RESULTS
dc.subjectEMPIRICAL STUDIES
dc.subjectEMPIRICAL WORKS
dc.subjectEMPLOYMENT STATUS
dc.subjectEQUATIONS
dc.subjectEXOGENOUS SHOCKS
dc.subjectEXPLANATORY FACTORS
dc.subjectEXPLANATORY POWER
dc.subjectEXPLANATORY VARIABLE
dc.subjectEXPLANATORY VARIABLES
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGINI COEFFICIENT
dc.subjectGINI INDEX
dc.subjectGROUP INEQUALITIES
dc.subjectHOUSEHOLD INCOME
dc.subjectINCOME DISTRIBUTION
dc.subjectINCOME EFFECT
dc.subjectINCOME EQUATION
dc.subjectINCOME INEQUALITY
dc.subjectINCOME LEVELS
dc.subjectINCOME SCALE
dc.subjectINCOME SOURCE
dc.subjectINCOME VARIABLES
dc.subjectINCOMES
dc.subjectINCREASING FUNCTION
dc.subjectINDIVIDUAL INCOMES
dc.subjectINEQUALITY
dc.subjectKEYNESIAN ECONOMICS
dc.subjectLABOR MARKET
dc.subjectLABOR SUPPLY
dc.subjectLABOUR
dc.subjectLIFE EXPECTANCY
dc.subjectLONGITUDINAL DATA
dc.subjectLOTTERY
dc.subjectLOW INCOME
dc.subjectMACROECONOMICS
dc.subjectMARGINAL UTILITY
dc.subjectMARKET ECONOMIES
dc.subjectMEAN INCOME
dc.subjectMEAN INCOMES
dc.subjectNATIONAL INCOME
dc.subjectNEGATIVE SIGN
dc.subjectPERMANENT INCOME
dc.subjectPERMANENT INCOME HYPOTHESIS
dc.subjectPOLICY DISCUSSIONS
dc.subjectPOLICY RESEARCH
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICAL SCIENCE
dc.subjectPOOR
dc.subjectPOSITIVE COEFFICIENT
dc.subjectPOVERTY REDUCTION
dc.subjectPUBLIC ECONOMICS
dc.subjectPUBLIC GOODS
dc.subjectPUBLIC POLICY
dc.subjectRELATIVE EARNINGS
dc.subjectRELATIVE INCOME
dc.subjectRELATIVE INCOME DISTRIBUTION
dc.subjectRELATIVE INCOMES
dc.subjectRURAL
dc.subjectRURAL AREAS
dc.subjectSAVINGS
dc.subjectSIGNIFICANT DIFFERENCES
dc.subjectSIGNIFICANT EFFECT
dc.subjectSOCIAL CAPITAL
dc.subjectTAXATION
dc.subjectTRANSITION ECONOMIES
dc.subjectUNEMPLOYED
dc.subjectUNEMPLOYMENT
dc.subjectUTILITY FUNCTION
dc.subjectUTILITY FUNCTIONS
dc.subjectUTILITY MAXIMIZATION
dc.subjectWAGE INCREASES
dc.subjectWAGES
dc.subjectWAR
dc.subjectWEALTH
dc.subjectWELL-BEING
dc.subjectWELLBEING
dc.titleThe Relative Income and Relative Deprivation Hypotheses : A Review of the Empirical Literatureen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleThe Relative Income and Relative Deprivation Hypotheses: A Review of the Empirical Literature
okr.date.disclosure2013-09-01
okr.date.doiregistration2025-04-10T11:49:41.729077Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2013/09/18263952/relative-income-relative-deprivation-hypotheses-review-empirical-literature
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.globalpracticePoverty
okr.guid579851468171249190
okr.identifier.doi10.1596/1813-9450-6606
okr.identifier.externaldocumentum000158349_20130917114624
okr.identifier.internaldocumentum18263952
okr.identifier.reportWPS6606
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/09/17/000158349_20130917114624/Rendered/PDF/WPS6606.pdfen
okr.topicPoverty Reduction::Rural Poverty Reduction
okr.topicPoverty Reduction::Poverty Impact Evaluation
okr.topicEconomic Theory and Research
okr.topicPoverty Reduction::Inequality
okr.topicSocial Protections and Labor::Labor Policies
okr.topicMacroeconomics and Economic Growth
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
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relation.isAuthorOfPublication.latestForDiscoveryc0b4c90d-8da0-5e41-b52e-aaa2bcb4c18e
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relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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